Holiday Homes in Bulgaria  
 

 
 

Questions and Answers

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HOW MANY CO-OWNERS WILL BE INVOLVED IN EACH SHARED OWNERSHIP GROUP?

  • There will be a maximum of 12 co-owners for each retreat. This number simplifies the management and decision-making and minimizes wear and tear on the property.

WILL I GET TO MEET THE OTHER CO-OWNERS PRIOR BUYING?

  • To the extent possible, we will try to make sure that each of the original buyers has the opportunity to contact the others. The shared ownership agreement will require that this contact opportunity with new co-owners continues as shares are resold or transferred.

WHEN WILL EACH CO-OWNER USE THE BULGARIAN HOLIDAY HOME?

  • Each unit will have a permanent usage structure so that each co-owner can be certain of his/her usage rights. Each co-owner will have a fixed number of weeks of usage each year, allocated in four weeks (in case of 12 co-owners). In some cases, a co-owner's usage weeks will be "fixed" meaning, for example, that the co-owner will always have the right to use the flat or house during July. In other cases, a co-owner's usage rights will be "floating" meaning, they will be arranged among them.

WHAT IF I CAN'T OR DON'T WANT TO STAY IN MY BULGARIAN VACATION HOME DURING MY USAGE PERIODS?

  • Co-owners will also be allowed to exchange their usage periods with other co-owners, give them to friends or family, or rent them and retain the rental income. When non-owners use the property, a property manager, elected by the co-owners’ group, will check them in and out, provide an orientation, and monitor the condition of the property.

HOW WILL THE CO-OWNED HOME AND CO-OWNER GROUP BE MANAGED?

  • Each flat or house will have a property manager who will be in charge of administering the usage system, collecting assessments, paying the bills, and keeping the property well-stocked and maintained. During the initial year of shared ownership, the co-owners’ group will elect a property manager. Later, each co-owner group will decide whether to continue with the original management arrangement or choose a different one.

HOW CAN I KNOW MY BULGARIAN HOLIDAY HOME WILL BE NICELY CLEANED AND FULLY OUTFITTED EACH TIME I ARRIVE?

  • Each flat or  house will be cleaned, inventoried and monitored during usage (by the relevant user). This cleaning period will coincide with the period between check-in and check-out time, so that your Bulgarian vacation home will have been prepared for you just before you arrive.

WHAT IF SOMETHING IS BROKEN, LIKE A TV OR AN OVEN; WHO PAYS?

  • Your annual dues will include an allowance for repair and replacement of all the things in the unit. When something breaks or wears out, it will be repaired or replaced at group cost. But if someone using the flat/house damages something or takes something, the responsible user will be required to reimburse the group.

HOW MUCH WILL EACH CO-OWNER PAY IN FEES OR DUES TO THE CO-OWNERS GROUP?

  • Each flat/house will have an annual operating budget including the costs of ongoing expenses like taxes, insurance and utilities, and an accumulating reserve for repair and replacement of the systems and unit contents. Each co-owner will pay monthly or quarterly assessments to the co-owners group based on this budget. The initial budget and assessment amounts will be provided with each offering. Assessments will be substantially less than those associated with large timeshare developments or apartment-hotels with elaborate overhead, services, and management costs.

CAN AN INDIVIDUAL CO-OWNER DECORATE OR MODIFY THE BULGARIAN VACATION HOME?

  • When you purchase your Bulgarian vacation home it will already be fully outfitted with attractive and high quality furniture. Permanent addition to and modification of the co-owned retreat and its contents will require approval from the co-owners group. This insures that the style and quality that entices you to buy your Bulgarian co-owned flat/house will remain in place throughout your ownership, or that you will have a say in any decision to change it. But you can keep your personal photos, decorations, and other belongings in your holiday home while you are there, and store them in your personal storage closet when you leave, so that your flat or house always seems like home.

HOW WILL DECISIONS BE MADE WITHIN A SHARED OWNERSHIP GROUP?

  • Although the property manager will have the authority to make small day-to-day operating decisions, and to handle emergencies, major decisions and supervision of the property manager will remain with the co-owners. Depending on the importance and potential impact of the decision, it will either be made by an annually elected governing board of three co-owners, or by vote of the entire co-owner group. The decision-making process will be organized and administered by the property manager, using mail, email, or conference call, depending on the owner group and the situation. Each group's governing agreement will specify which types of decisions are made by the manager, board or entire group, and what procedures must be followed for notice, discussion and voting.

CAN I SELL MY SHARE?

  • You are free to sell your ownership share at any time, for any price you and a buyer agree upon. Of course, the buyer may be one of the other co-owners. In some cases, we may be able to assist you in finding a buyer or completing the sale process.

CAN MORE THAN ONE FAMILY OR INDIVIDUAL OWN A SINGLE SHARE?

  • Yes, but the share owned by the "subgroup" will continue to be treated as a single share from the standpoint of usage assignment, voting and assessments. This means that each member of the subgroup will be individually responsible for payment of all assessments and compliance with co-owner group rules.

HOW DOES THE PURCHASE PROCESS FOR AN EIG SHARE WORK?

  • Once you decide you are interested in one or more of our Bulgarian home offers, we hope you will come to Bulgaria to meet us and see the property. If you like one of our proposals, we will work with you to explain the details of the shared ownership, and assess which of the available usage options will work best for you. When you decide to buy, you will need to wait until all owners are available for the purchase of the flat or house. Then you will all need to visit us for the documentary proceedings – setting up a limited company, putting in the company capital (a total of BGN 5000 per company), signing a company agreement for the purchase, signing a protocol of the General Meeting of the shareholders for the management of the property, etc.

WHAT IF A CO-OWNER DOES NOT PAY HIS/HER DUES OR OTHERWISE VIOLATES THE SHARED OWNERSHIP AGREEMENT?

  • Through 14 years experience advising shared ownership groups, we have learned that when a shared ownership group is well organized, and the shared ownership agreement is thorough, clear and fair, violations are extremely unusual, and legal enforcement is statistically very rare. But should a problem arise, the responsible co-owner would have a reasonable opportunity to make the late payment or cure the violation, after which the co-owners group would have the right to initiate a foreclosure-like procedure to force a sale of the defaulting co-owner's share. Sale proceeds would be applied to pay any arrearages, penalties and sale costs, with the balance going to the defaulting owner. Where necessary, the process can be enforced through binding arbitration in Bulgaria conducted under Bulgarian Law.

WHAT IS THE INCOME TAX TREATMENT FOR ONE SHARE?

  • Your tax treatment will be affected by how long you own the property. Generally you have 2 annual taxes – inhabited house duty and garbage tax. This may be dealt with by the property manager.

IF I AM INTERESTED IN CONSIDERING A CO-OWNED HOLIDAY RETREAT, WHAT IS MY NEXT STEP?

  • Please contact EIG so that we can set up a meeting or call you to discuss our current offerings and proceed further. We will also add you to our database and alert you via email when we have future offerings.
* Price per share considering a group of 12 shareholders
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